Tax plan now to save more
We have put together a few top tips to help you plan ahead and make sure you are saving as much as possible against your next tax bill. Time spent considering these options as early as possible can really make a difference.
- USE YOUR ISA: The ISA allowance for 2018/19 remains at £20,000 and cannot be carried forward so make the most of this
- PENSION ALLOWANCE: Maximise your pension allowance of £40,000 (unless you earn over £150,000, then it’s £10,000). You can carry forward unused pension annual allowances for up to three years, so any remaining 2015/16 allowance needs to be used by 5 April next year
- STAKEHOLDER PENSIONS: for non-earning spouses and children – contribute £2,880 and effectively receive £720 free
- TRANSFER YOUR ASSETS: You can transfer income producing assets to the lower earning spouse to utilise their personal allowance and lower tax bands. Do this early in the year for maximum benefit
- CAPITAL GAINS EXEMPTION: Use the capital gains annual exemption of £11,700 for 2018/19 – it can’t be carried forward or transferred to another person
- FILE EARLY: If you think you are due a tax repayment, file your tax return as soon as possible so that you receive the refund. If you had to make advance payments on account for 2017/18, it makes sense to file your tax return before 31 July 2018, so that the second payment on account could be potentially reduced. It also limits the time that HMRC has to raise an enquiry
- IHT: Use the inheritance tax gift exemption of £3,000, which can be carried forward for just one year
- DONATE EARLY: Make any charitable donations before filing your 2017/18 tax return and you can decide whether you want to carry back the donation to 2017/18 to achieve the tax relief earlier
Talk to us – we can make a significant difference and make sure you are covering all your options to save as much as possible.